To determine how portable your book of business is, there are at least seven key questions to consider.
If you’re a wealth advisor with client relationships that are restricted under a non-solicit, or possibly even a limited non-compete, or if you’re a company seeking to hire someone with a potentially portable book of business, there are several key questions to consider in making a best guess estimate to determine which clients may or may not follow without solicitation.
– Are you the main point of contact for your client? It’s important to think about whether your client considers you to be their trusted advisor for all financial matters, or if your relationship is limited to investments only.
– How deep is your relationship with your client? Do they know where you live? Have your cell phone? Do you share hobbies and outside interests?
– Where did the client come from? Was the client sourced internally, through your own network, referred from an existing client, or inherited from a retiring financial advisor?
– What’s in it for the client? Will pricing be better? Is the platform more robust?
– Are there any products that are more proprietary or are unlikely to move? Trusts, alternatives, etc.
– What are their lending and credit terms? Can they be matched or improved?
– Where are the assets custodied? Not switching custodians is always easier.
While non-protocol advisors moving their books in never a simple situation, the process of asking the right questions should be helpful in providing enough information to make an education best guess as to how many clients are likely to follow.
